On Thursday afternoon, the GBP/USD pair is trying to regain its positions after overreacting earlier.
The British Pound is attempting to recover against the USD in the middle of the week the current quote for the instrument is 1.3147.
Yesterday, the Pound had two reasons to fall. One of them is a secret meeting of Priti Patel, the British Secretary of State for International Development, and Israeli politicians. The problem is that the British government had no idea about this meeting and, hence, was very surprised. The scandal started when Theresa May refused to dismiss Patel from the position. May’s decision on Patel’s initiative, which wasn’t criminal indeed, made investors think that the policy conducted by her and her Cabinet of Ministers was effective.
The second reason why the Pound was sold is research results published by Oxford Economics. The organization’s findings show that the Brexit procedure consequences might be much more serious than investors thought earlier. On average, as the report says, the pressure on the British economy after the Brexit may be 10 times more that the pressure on neighboring countries. One of the risks, which is very difficult to predict and calculate right now, is possible uncertainty of trading processes.
Considering that there has never been anything like the Brexit in the European history, any “horrors” may be expected in the future. No one knows what is going to happen, but European and British politicians are trying real hard to take into account all possible obstructions. However, the former are intentionally dragging out the negotiations in order to derive benefit from the situation,
RoboForex Analytical Department